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12)
NAME:_____________________________ DATE_________________
1. On October 1, 20x1, the warehouse of ABC Co. and all inventories contained therein were damaged by
flood. Off-site back up of data base shows the following information:
Additional information:
Goods in transit as of October 1, 20x1 amounted to ₱1,000, cost of goods out on consignment is ₱1,200, and
materials damaged by flood can be sold at a salvage value of ₱1500.
2. The following information pertains to R Co.'s accounts receivable at December 31, 20X1:
Days Estimated Outstanding Amount % uncollectible
0-60 P120,000 1%
61-120 P90,000 3%
During 20X1, R wrote off P5,000 in receivables and recovered P3,000 that had been written off in prior
years. R's December 31, 20X1, allowance for uncollectible accounts was P22,000.
Under aging method, what amount of allowance for uncollectible accounts should R report at December 31,
20X1?
3. C Co. determined that the net value of its accounts receivable at December 31, 20X1, based on an aging of the
receivables, was P325,000. Additional information is as follows:
Allowance for uncollectible accounts - 1/1/x1 P10,000
4. The following information relates to Jay Co's accounts receivable for 20X9:
Account receivable, 1/1/x9 P650,000
What amount should Jay report for account receivable, before allowances for sales returns and uncollectible
accounts, at December 31, 20X9?
5. Leaf Co. purchased from Oak Co. a P20,000, 8%, 5-year note that required five equal annual year-end
payments of P5,009. The note was discounted to yield a 9% rate of Leaf. At the date of the purchase, Leaf
recorded the note at its present value of P19,485.
8. What should be the total interest revenue earned by Leaf over the life of this note?
6.Entity A issued a 10%, ₱500,000, one-year, note payable on July 1, 20x1. The principal and interest are due on
July 1, 20x2. What is the adjusting entry to take up accrued interest expense on December 31, 20x1?
7.Entity A has equipment with a historical cost of ₱1,000,000. The equipment was estimated to have a 20-year
useful life when it was acquired four years ago. What is the adjusting entry to take up the annual depreciation
expense on December 31, 20x1?
8.Entity A is preparing its March 31, 20x1 bank reconciliation. The following information was determined:
The cash balance per books is ₱280,000 while the cash balance per bank statement is ₱320,000.
Credit memo – ₱20,000
Debit memo – ₱15,000
Deposits in transit – ₱75,000
Outstanding checks – ₱25,000
The disbursements per books are overstated by ₱45,000.
The bank debits are understated by ₱40,000.
2. The following information was obtained in connection with the audit of Blu Co. cash account as
of December 31, 2018.:
Cash balance per general ledger Dec. 31, 2018 37,500
Actual company collections from its customers during december 152,500
Company checks paid by bank in December 130,000
Bank service charges recorded on company books in December 2,500
Bank service charges per December bank statement 3,250
Deposits credited by bank during December 145,000
November bank service charges recorded on company books in December 1,500
Outstanding checks, Nov. 30, 2018 P16,250
Outstanding checks Dec. 31, 2018 12,500
Deposit in transit Nov.30,2018 12,500
The bank erroneously charged the companys account for a P3,750 check of another
depositor. This bank error was corrected in January 2019.